Elon Musk's xAI and X to Repay $17.5 Billion in Debt Early

March 04, 2026
Elon Musk’s companies X and xAI plan to repay about $17.5 billion in debt in full, according to Bloomberg, with Morgan Stanley informing lenders of the move. The repayment comes shortly after SpaceX acquired xAI and ahead of a potential SpaceX IPO.

Elon Musk’s social media platform X and his artificial intelligence company xAI plan to repay about $17.5 billion in debt in full, reports Reuters, citing Bloomberg. Morgan Stanley, which manages the debt for both companies, has informed lenders that the firms intend to pay back everything they owe.

The repayment includes roughly $12 billion tied to X and $5 billion borrowed by xAI through bonds and loans. Some of xAI’s $3 billion in high-yield bonds will be redeemed at a premium of about 117 cents on the dollar. The companies have not disclosed the source of the repayment funds.

The move follows a series of corporate changes involving Musk’s businesses. SpaceX acquired xAI in February in a deal valuing the AI company at $250 billion, giving it greater flexibility to restructure its finances. xAI had previously acquired X in 2025, inheriting the social media company’s debt in the process.

Morgan Stanley declined to comment, and representatives for X and xAI did not respond to requests for comment.

We hope you enjoyed this article.

Consider subscribing to one of our newsletters like AI Funding Brief or Daily AI Brief.

Also, consider following us on social media:

AI Funding News AI Brief AI Brief (X)

More from: Funding

03/03
Blackstone Plans Publicly Traded AI Data Center Acquisition Company
03/02
Firmable Raises $14 Million Series A to Expand AI Sales Platform Globally
03/02
Basis Raises $100M at $1.15B Valuation to Expand AI Accounting Agents
03/02
Einride Raises $113 Million to Support Merger with Legato Merger Corp. III
03/02
NODA AI Raises $25M to Advance Defense Autonomy Platform

Subscribe to AI Funding Brief

AI Token Webinar

Whitepaper

Stanford HAI’s 2025 AI Index Reveals Record Growth in AI Capabilities, Investment, and Regulation

The 2025 AI Index by Stanford HAI provides a comprehensive overview of the global state of artificial intelligence, highlighting significant advancements in AI capabilities, investment, and regulation. The report details improvements in AI performance, increased adoption in various sectors, and the growing global optimism towards AI, despite ongoing challenges in reasoning and trust. It serves as a critical resource for policymakers, researchers, and industry leaders to understand AI's rapid evolution and its implications.

Read more

You May Also Like